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PBA releases study of US beauty retail industry
[Tue 30/06/2009 02:13:11]
US beauty industry organisation, The Professional Beauty Association (PBA) will release its Business of Beauty: Maximize Your Profitability study at the upcoming PBA Symposium on July 19, 2009, during Cosmoprof North America.
Commissioned by PBA and the PBA Foundation, the study is said to be the first of its kind, providing an in-depth investigation on the retail beauty industry in the United States. The study includes information relevant to beauty salons, spas and hair salons. It was conducted by a task force of leading manufacturers, distributors and salon owners, and was established to provide salons with a thorough understanding of the US marketplace to identify and capture opportunities to dramatically increase retail sales and reach full-profit potential.
“The retail beauty industry in the United States is extremely large. It’s growing fast and is very competitive,” said Samantha Alvis, PBA Director Leadership Operations. “While there is significant opportunity for salons to grow retail sales and profits, there is also considerable threats from an ever-growing variety of competitors, including mass retail establishments (Wal-Mart), drugstores (CVS / Walgreens) and internet-based sellers who want a piece of this profitable business. While salons have traditionally focused on the service component of their businesses, the study demonstrates how a more studied and diligent approach to the retail portion of the business will play an important role in their current and future success.”
In order to deliver a well-rounded investigation, the study took into account factors such as the size of the market, the perspective of the therapist and the customer, retail and industry-wide best practices and the overall salon experience. The study also includes interviews with stylists, therapists, clients, manufacturers and distributors to help identify best practices within the salon retail industry.
The PBA says that the main objectives of the study are to identify current successful retail strategies as industry models, identify attitudes and perceptions that cultivate sales and customer loyalty and to boost retail profitability. The belief is that the retail component of salons creates and offers significant opportunity within the industry to raise sales and profits, as well as improve the customer’s beauty retail experience and compete with current and future non-salon retail competition. The study results aim to serve as a strategic blueprint for the growth of retail sales at salons.
According to recently reported data of the overall retail beauty category in the United States, retail sales of about $43 billion were posted at the end of 2006, and are projected to reach $59 billion by 2012. Based on future forecasts, an additional $300 million in growth in salon-based products is projected by 2012. While some salon products are sold outside the channel, the study estimates that retail sales within salons are $2.5 billion today. To help salons reach their full retail potential, the study defines a clear eight-step process establishing a commitment to retail that is integrated with the overall salon philosophy and culture.
The PBA Business of Beauty Study will be available during PBA Beauty Week for a special onsite price of $195US. For more information about the work of the PBA or to order a copy of the study, please visit www.probeauty.org.
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